"only one ""buyer"" of a product or service; a monopoly may also have monopsony control of a sector of a market. Likewise, a monopoly should be distinguished from a cartel (a form of oligopoly), in which several providers act together to coordinate services, prices or sale of goods. Monopolies, monopsonies and oligopolies are all situations in which one or a few entities have market power and therefore interact with their customers (monopoly or oligopoly), or suppliers (monopsony) in ways that distort the market. Monopolies can be established by a government, form naturally, or form by integration. In many jurisdictions, competition"
"Monopoly A monopoly (from Greek μόνος ""mónos"" [""alone"" or ""single""] and πωλεῖν ""pōleîn"" [""to sell""]) exists when a specific person or enterprise is the only supplier of a particular commodity. This contrasts with a monopsony which relates to a single entity's control of a market to purchase a good or service, and with oligopoly which consists of a few sellers dominating a market. Monopolies are thus characterized by a lack of economic competition to produce the good or service, a lack of viable substitute goods, and the possibility of a high monopoly price well above the seller's marginal cost that"
"Monopsony In economics, a monopsony (from Ancient Greek μόνος (""mónos"") ""single"" + ὀψωνία (""opsōnía"") ""purchase"") is a market structure in which a single buyer substantially controls the market as the major purchaser of goods and services offered by many would-be sellers. In the microeconomic theory of monopsony, a single entity is assumed to have market power over sellers as the only purchaser of a good or service, much in the same manner that a monopolist can influence the price for its buyers in a monopoly, in which only one seller faces many buyers. Monopsony theory was developed by economist Joan"
"as public utilities."" A monopoly is defined as ""a firm that is the only seller of a product or service having no close substitutes."" A natural monopoly is when the entire demand within a relevant market can be satisfied at lowest cost by one firm rather than by two or more, and if such a market contains more than one firm then the firms will ""quickly shake down to one through mergers or failures, or production will continue to consume more resources than necessary."" In a monopoly competition is said to be short-lived, and in a natural monopoly it is"
"Oligopsony An oligopsony (from Ancient Greek ὀλίγοι (oligoi) ""few"" + ὀψωνία (opsōnia) ""purchase"") is a market form in which the number of buyers is small while the number of sellers in theory could be large. This typically happens in a market for inputs where numerous suppliers are competing to sell their product to a small number of (often large and powerful) buyers. It contrasts with an oligopoly, where there are many buyers but few sellers. An oligopsony is a form of imperfect competition. The terms monopoly (one seller), monopsony (one buyer), and bilateral monopoly have a similar relationship. In each"
"private individual or company to be the sole provider of a commodity. Monopoly may be granted explicitly, as when potential competitors are excluded from the market by a specific law, or implicitly, such as when the requirements of an administrative regulation can only be fulfilled by a single market player, or through some other legal or procedural mechanism, such as patents, trademarks, and copyright. A monopolist should shut down when price is less than average variable cost for every output level – in other words where the demand curve is entirely below the average variable cost curve. Under these circumstances"
"leads to a high monopoly profit. The verb ""monopolise"" or ""monopolize"" refers to the ""process"" by which a company gains the ability to raise prices or exclude competitors. In economics, a monopoly is a single seller. In law, a monopoly is a business entity that has significant market power, that is, the power to charge overly high prices. Although monopolies may be big businesses, size is not a characteristic of a monopoly. A small business may still have the power to raise prices in a small industry (or market). A monopoly is distinguished from a monopsony, in which there is"
"Monopoly profit In economics a monopoly is a firm that lacks any viable competition, and is the sole producer of the industry's product. In a normal competitive situation, no firm can charge a price that is significantly higher than the Marginal (Economic) cost of producing (the last unit of) the product. If any firm doing business within a competitive situation tries to raise prices significantly higher than the Marginal cost of producing the product, it will lose all of its customers to either other existing firms that charge lower prices, or to a new firm that will find it profitable"
"Monopole (wine) A monopole (French for 'monopoly') is an area controlled by a single winery (wine company) and can be as small as a named vineyard (""lieu-dit"") or as large as an entire"" appellation d'origine contrôlée"" (AOC). Frequently this is mentioned on the label as it is rare for only one winery to produce all the wine from an area entitled to a certain name. Each wine is sold by only one company. The Napoleonic inheritance laws typically caused vineyards to be so finely divided among inheritors -down to even a single row of vines- that ""négociants"" are needed to"
"a good), duopoly (in which there are only two sellers of a good), oligopoly (in which there are few sellers of a good), monopolistic competition (in which there are many sellers producing highly differentiated goods), monopsony (in which there is only one buyer of a good), and oligopsony (in which there are few buyers of a good). Unlike perfect competition, imperfect competition invariably means market power is unequally distributed. Firms under imperfect competition have the potential to be ""price makers"", which means that, by holding a disproportionately high share of market power, they can influence the prices of their products."
"State monopoly In economics, a government monopoly (or public monopoly) is a form of coercive monopoly in which a government agency or government corporation is the sole provider of a particular good or service and competition is prohibited by law. It is a monopoly created by the government. It is usually distinguished from a government-granted monopoly, where the government grants a monopoly to a private individual or company. A government monopoly may be run by any level of government - national, regional, local; for levels below the national, it is a local monopoly. The term state monopoly usually means a"
"one study finding monopsony power in Indonesia due to barriers to entry in developing countries. Several studies expanding their view for monopsony power have found economic and labor mobility in the US precludes any detectable monopsony effects with the notable exceptions of professional sports and (with some disagreement ) nursing. Both of these industries have highly specialized labor conditions and are generally not substitutable. Monopsony In economics, a monopsony (from Ancient Greek μόνος (""mónos"") ""single"" + ὀψωνία (""opsōnía"") ""purchase"") is a market structure in which a single buyer substantially controls the market as the major purchaser of goods and services"
"Single desk A single desk is a monopoly marketer and buyer of a product with multiple suppliers. They were common in markets for agricultural produce. In Australia, the single desk was the monopoly marketing of wheat by the Australian Wheat Board (1939–1999) and its privatised successor, AWB (International) Limited (1999–2008). In this situation, returns from growers were pooled together nationally and the prices averaged by the Board, which covered both domestic and international sales until 1989, when it focused exclusively on exports. In its last year, this was limited further to just bulk exports. Momentum for change to the export"
"Oligopoly An oligopoly (, from Ancient Greek ὀλίγος (olígos) ""few"" + πωλεῖν (poleîn) ""to sell"") is a market form wherein a market or industry is dominated by a small number of large sellers (oligopolists). Oligopolies can result from various forms of collusion which reduce competition and lead to higher prices for consumers. Oligopolies have their own market structure. With few sellers, each oligopolist is likely to be aware of the actions of the others. According to game theory, the decisions of one firm therefore influence and are influenced by decisions of other firms. Strategic planning by oligopolists needs to take"
"a monopoly (""μονοπώλιον""). Another early reference to the concept of “monopoly” in a commercial sense appears in tractate Demai of the Mishna (2nd century C.E.), regarding the purchasing of agricultural goods from a dealer who has a monopoly on the produce (chapter 5; 4). The meaning and understanding of the English word 'monopoly' has changed over the years. Vending of common salt (sodium chloride) was historically a natural monopoly. Until recently, a combination of strong sunshine and low humidity or an extension of peat marshes was necessary for producing salt from the sea, the most plentiful source. Changing sea levels"
"Monopoly price A monopoly price is set by a monopoly. A monopoly occurs when a firm is the only firm in an industry producing the product, such that the monopoly faces no competition. A monopoly has absolute market power, and thereby can set a monopoly price that will be above the firm's marginal (economic) cost, which is the change in total (economic) cost due to one additional unit produced. The monopoly will ensure a monopoly price will exist when it establishes the quantity of the product it will sell. As the sole supplier of the product within the market, its"
"limited competition because the industry is resource intensive and requires substantial costs to operate. In economics, the idea of monopoly is important in the study of management structures, which directly concerns normative aspects of economic competition, and provides the basis for topics such as industrial organization and economics of regulation. There are four basic types of market structures in traditional economic analysis: perfect competition, monopolistic competition, oligopoly and monopoly. A monopoly is a structure in which a single supplier produces and sells a given product. If there is a single seller in a certain market and there are no close"
"Government-granted monopoly In economics, a government-granted monopoly (also called a ""de jure monopoly"") and the monopoly to be served under government is a form of coercive monopoly by which a government grants exclusive privilege to a private individual or firm to be the sole provider of a good or service; potential competitors are excluded from the market by law, regulation, or other mechanisms of government enforcement. As a form of coercive monopoly, government-granted monopoly is contrasted with a ""coercive monopoly"" or an ""efficiency monopoly"", where there is no competition but it is not forcibly excluded. Amongst forms of coercive monopoly"
"barley grown in the prairie provinces. Its monopoly was removed in 2011, effective August 2012. Single desk A single desk is a monopoly marketer and buyer of a product with multiple suppliers. They were common in markets for agricultural produce. In Australia, the single desk was the monopoly marketing of wheat by the Australian Wheat Board (1939–1999) and its privatised successor, AWB (International) Limited (1999–2008). In this situation, returns from growers were pooled together nationally and the prices averaged by the Board, which covered both domestic and international sales until 1989, when it focused exclusively on exports. In its last"
"product is set by a single company (price is not imposed by the market as in perfect competition). Although a monopoly's market power is great it is still limited by the demand side of the market. A monopoly has a negatively sloped demand curve, not a perfectly inelastic curve. Consequently, any price increase will result in the loss of some customers. Price discrimination allows a monopolist to increase its profit by charging higher prices for identical goods to those who are willing or able to pay more. For example, most economic textbooks cost more in the United States than in"
"consumers, called formula_1 and formula_2 with valuations of good with formula_3 and formula_4 respectively. The valuations are such as formula_5. The monopoly cannot directly identify individual consumers but it knows that there are 2 different valuations of a good. The good being sold is durable so that once a consumer buys it, he or she will still have it in all subsequent periods. This means that after the monopolist has sold to all consumers, there can be no further sales. Also assume that production is such that average cost and marginal cost are both equal to zero. The monopolist could"
"An oligopoly is a market structure in which a market or industry is dominated by a small number of firms (oligopolists). Oligopolies can create the incentive for firms to engage in collusion and form cartels that reduce competition leading to higher prices for consumers and less overall market output. Alternatively, oligopolies can be fiercely competitive and engage in flamboyant advertising campaigns. A monopsony is a market where there is only one buyer and many sellers. An oligopsony is a market where there are a few buyers and many sellers. Game theory is a major method used in mathematical economics and"
"bottle commercial quantities of a wine. Whether a ""monopole"" indicates a wine of unusual quality or not is a matter of debate. In Burgundy: Others Monopole (wine) A monopole (French for 'monopoly') is an area controlled by a single winery (wine company) and can be as small as a named vineyard (""lieu-dit"") or as large as an entire"" appellation d'origine contrôlée"" (AOC). Frequently this is mentioned on the label as it is rare for only one winery to produce all the wine from an area entitled to a certain name. Each wine is sold by only one company. The Napoleonic"
"Coercive monopoly In economics and business ethics, a coercive monopoly is a firm that is able to raise prices, and make production decisions, without risk of competition arising to draw away their customers. A coercive monopoly is not merely a sole supplier of a particular kind of good or service (a monopoly), but it is a monopoly where there is no opportunity to compete with it through means such as price competition, technological or product innovation, or marketing; entry into the field is closed. As a coercive monopoly is securely shielded from possibility of competition, it is able to make"
"that they could gain power through government did monopolies begin to form. Baten, Bianchi and Moser find historical evidence that monopolies which are protected by patent laws may have adverse effects on the creation of innovation in an economy. They argue that under certain circumstances, compulsory licensing – which allows governments to license patents without the consent of patent-owners – may be effective in promoting invention by increasing the threat of competition in fields with low pre-existing levels of competition. Monopoly A monopoly (from Greek μόνος ""mónos"" [""alone"" or ""single""] and πωλεῖν ""pōleîn"" [""to sell""]) exists when a specific person"
"de facto monopoly is a system where many suppliers of a product are allowed, but the market is so completely dominated by one that the others might as well not exist. The related terms oligopoly and monopsony are similar in meaning and this is the type of situation that antitrust laws are intended to eliminate. A domestic partner outside marriage is referred to as a de facto husband or wife by some authorities. In Australia and New Zealand, the phrase ""de facto"" by itself has become a colloquial term for one's domestic partner. In Australian law, it is the legally"
"this definition is therefore more commonly called a ""twinstick"". Duopoly A duopoly (from Greek δύο, ""duo"" (two) + πωλεῖν, ""polein"" (to sell)) is a form of oligopoly where two sellers are the biggest in one market. In practice, the term is also used where two firms have dominant control over a market. It is the most commonly studied form of oligopoly due to its simplicity. There are two principal duopoly models, Cournot duopoly and Bertrand duopoly: Modern American politics, in particular the electoral college system has been described as duopolistic since the Republican and Democratic parties have dominated and framed"
"sometimes call the system a legal monopoly anyway. The creation of Sirius XM Radio by merger left the United States with only one licensed satellite radio broadcasting company. However, the United States Department of Justice decided that this was not harmful to competition, due to the presence of terrestrial broadcasters. Legal monopoly A legal monopoly, statutory monopoly, or ""de jure"" monopoly is a monopoly that is protected by law from competition. A statutory monopoly may take the form of a government monopoly where the state owns the particular means of production or government-granted monopoly where a private interest is protected"
"a monopoly on its share of consumers. Firms choose a price that maximizes profit: the monopoly price. A recurrent observation is that some consumers must sample one firm and only one, while the remaining consumers must sample at least two firms. If all of them sample only one firm, then the market faces Diamond’s Paradox. Firms would ask the same price, and so there would be no price dispersion. On the contrary, if all consumers sample at least two firms. The most expensive firm will not get any consumer, because consumers know at least another firm that is cheaper. As"
"as the ""revolution in monopoly theory"". A monopolist can extract only one premium, and getting into complementary markets does not pay. That is, the total profits a monopolist could earn if it sought to leverage its monopoly in one market by monopolizing a complementary market are equal to the extra profits it could earn anyway by charging more for the monopoly product itself. However, the one monopoly profit theorem is not true if customers in the monopoly good are stranded or poorly informed, or if the tied good has high fixed costs. A pure monopoly has the same economic rationality"
"not true for firms operating in other market structures. For example, while a monopoly ""has"" an MC curve it does not have a supply curve. In a perfectly competitive market, a supply curve shows the quantity a seller's willing and able to supply at each price – for each price, there is a unique quantity that would be supplied. The one-to-one relationship simply is absent in the case of a monopoly. With a monopoly, there could be an infinite number of prices associated with a given quantity. It all depends on the shape and position of the demand curve and"
"systems (""freeing"" the markets) the free markets could run without market failures. For a market to be competitive, there must be more than a single buyer or seller. It has been suggested that two people may trade, but it takes at least three persons to have a market, so that there is competition in at least one of its two sides. However, competitive markets—as understood in formal economic theory—rely on much larger numbers of both buyers and sellers. A market with a single seller and multiple buyers is a monopoly. A market with a single buyer and multiple sellers is"
"addition to increasing their market share with consumers, consolidation of suppliers means that retailers can exercise significant market power. In some countries, this has led to allegations of abuse, unethical and illegal conduct. The situation in Australia is a good example, with two retailers, Coles and Woolworths controlling 70% of the national food market. Oligopsony An oligopsony (from Ancient Greek ὀλίγοι (oligoi) ""few"" + ὀψωνία (opsōnia) ""purchase"") is a market form in which the number of buyers is small while the number of sellers in theory could be large. This typically happens in a market for inputs where numerous suppliers"